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SoftBank to Eclipse Microsoft with $40B OpenAI Stake, Fuelling Stargate AI Ambitions

Word on the StreetFriday, Feb 7, 2025 10:00 am ET
1min read

SoftBank is reportedly on the brink of sealing a substantial investment deal with OpenAI, amounting to $40 billion. This move is set to elevate SoftBank as the primary investor in OpenAI, surpassing the tech giant Microsoft in its shareholder standing. The investment discussions place OpenAI's pre-investment valuation at $260 billion, gearing towards a post-investment valuation of $300 billion. The deal is structured for SoftBank to disburse the funds over the next 12 to 24 months, with potential for the initial payment to be executed as early as the spring.

The strategic investment is indicative of the growing valuation and market perception surrounding OpenAI, especially considering its previous valuation of $157 billion by private investors in October 2024. Despite preliminary expectations that this financing round might push OpenAI’s valuation to $340 billion, insider sources have indicated a more conservative figure closer to $300 billion.

A notable portion of the incoming funds is earmarked for OpenAI’s collaborative venture in the “Stargate” project. This initiative, a joint enterprise with SoftBank and Oracle, was formally announced in January 2025. The venture is projected to infuse a staggering $500 billion over the next four years into building new artificial intelligence infrastructure in the United States, underscoring the ambitious scale and commitment envisioned for OpenAI’s expansion and technological advancement.

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